Symantec's Irish division reports €73m pretax profit

THE IRISH arm of internet security company Symantec returned to profit last year to record pretax profits of €73 million in spite of a decline in revenues.

According to accounts just filed by Dublin-based Symantec Ltd, the company recorded a pretax profit of €72.9 million in the year to the end of April 2nd, 2010, following a pretax loss of €6.6 million in 2009.

The figures show that the US-owned company’s revenues last year declined by 8 per cent, or €125 million, from €1.48 billion to €1.36 billion last year.

The chief factor behind the increase in pretax profits was a foreign currency gain of €50 million on intercompany transactions in 2010, the accounts state.

The downturn in the Dublin commercial property market resulted in an impairment on a Symantec building of €14 million, while the company also recorded a €28 million impairment on investments.

The revenues generated at the Dublin unit accounted for 29.5 per cent of the company’s global revenues of €4.6 billion in 2010.

The company’s cost of sales in Ireland last year dropped by 10 per cent from €769.5 million to €691.3 million. The company’s gross profit decreased by 7 per cent, or €47.2 million, to €670.5 million.

Accumulated profits at the end of the year totalled €81.7 million with shareholder funds amounting to €90.2 million, the accounts show.

The company paid taxes last year of €7.5 million compared to €17.4 million in 2009.

The numbers employed by Symantec during 2010 decreased by 138 from 863 to 725 with staff costs decreasing by 13 per cent from €52.8 million to €45.7 million.

The jobs reduction followed Symantec announcing plans to cut 70 jobs at its Blanchardstown operations following the company’s decision to transfer manufacturing to the Czech Republic.

At the time, Symantec also announced the creation of 45 new telesales jobs in Ireland.

The figures show that the company’s workforce is made up of 449 people in selling, marketing and administration, and 276 in development and support.

Referring to manufacturing transferring to the Czech Republic, Symantec directors state that they “do not anticipate any other changes in the nature of the business in the forthcoming year”.

The company provides a broad range of content and network security software solutions and the filings also relate to Symantec subsidiaries located in China, Ukraine, Dublin, London and Shannon in Ireland.

The accounts include €4.8 million in depreciation costs and €2.7 million in amortisation of intangible assets.